Los Angeles – Reed Hastings, Co-CEO of Netflix It is believed that linear television may end within the next decade.
“Broadcasting is working everywhere. Everyone is streaming,” Hastings said Tuesday on the media giant’s second-quarter earnings call. “It’s definitely the end of linear television for the next five or 10 years.”
The predictions come after producer Stranger Things reported a loss of 970,000 subscribers during the second quarter, short of the company’s guidance of two million subscribers. In the first quarter, broadcasting lost 200,000 subscribers — its first decline in more than a decade.
“We’re improving everything we do in terms of marketing, improving service, and promoting, and it’s all just paying off,” Hastings added. “But again, we’re talking about losing a million instead of losing two million. So our enthusiasm is tempered by the less bad outcomes.”
FILE – Netflix co-founder and CEO Reed Hastings is in Sydney to meet with executives of other subscription streaming services, February 25, 2022 (Photo by Wolter Peeters/Fairfax Media via Getty Images)
NETFLIX CEO Says Stranger Things may experience ‘a couple extra episodes’ without a mounting financial burden
In its shareholder letter, Netflix said the company carved out more television viewing time than any other outlet during the 2021-2022 television season, which is roughly the sum total of CBS and NBC, the two most-watched broadcast networks. Netflix’s share of total TV viewing in the US hit an all-time high of 7.7% in June.
In the near term, the company said it is focused on re-accelerating revenue and subscriber growth. Netflix will release a file Cheaper ad-supported subscription tier In partnership with Microsoft in the early part of 2023.
“Over time, we hope to create a better linear TV advertising model that is more seamless and convenient for consumers, and more effective for our advertising partners,” Neflix said. “While it will take some time to grow our ad tier member base and associated ad revenue, in the long run, we believe advertising can enable significantly increased membership (through lower pricing) and revenue growth (through ad revenue).
In addition, the company has been testing a Paid sharing feature in Chile, Costa Rica and Peru Since March called “Add additional member”.
I will too Test the ‘Add a house’ option In Argentina, Dominican Republic, Honduras, El Salvador and Guatemala starting in August, which will require users to pay an additional monthly fee if they stream through a TV or TV-connected device located outside a primary home linked to their account for more information from two weeks.
In this illustration taken July 19, 2022, the Netflix logo appears on a television remote control in Los Angeles. (Photo by Chris Delmas/AFP) (Photo by Chris Delmas/AFP via Getty Images)
The company revealed in April that it has more than 100 million families Password sharing, including 30 million passwords in the US and Canada.
“Our goal is to find an easy-to-use paid sharing offering that we believe works for our members and our business and could roll out in 2023,” Netflix said.
As of the end of the second quarter, Netflix has nearly 221 million subscribers globally. The company expects to add another million subscribers in the third quarter.
As of press time, Netflix shares are down more than 60% since the beginning of the year.
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